POST-PANDEMIC RESILIENCE: REVITALIZING ROMANIA'S AGRI-FOOD VALUE CHAINS

Abstract

The Romanian economy has evolved from centrally managed value chains during the pre-political and economic transformation era to a decentralized market economy. As of 2022, nearly 45.7% of the population resides in rural areas, significantly higher than the 23.6% average in EU member states. Additionally, about 30% of the population works in agriculture, contrasting sharply with the 2% average in the EU. This discrepancy manifests in a higher poverty level and a lower living standard in rural compared to urban areas. The current structure of the agri-food value chain in Romania entraps farmers between suppliers and customers, adversely affecting their prosperity. The practice of involving multiple intermediaries between producers and consumers results in only a fraction of the benefits reaching the farmers, which in turn negatively impacts their productivity and investment motivation, particularly for semi-subsistence farms. Addressing this challenge requires not only the development of medium-sized agricultural holdings but also strategies to enhance working capital and market access for small farmers. This study proposes the creation of short agri-food chains, such as producer groups, organized in a clustered, networked, and proximity-based manner, as a viable approach to better integrate farms into national and European markets in the post-pandemic era. This approach is crucial for revitalizing Romania's agri-food value chains and fostering resilience in the agricultural sector post-pandemic.